Politics

NBU suggests that NSDC bans Russian state banks’ subsidiaries from executing any financial transactions in favor of their parent banks


An activist of Ukrainian radical party “National Corps” sticks placards reading “Attention. It is the bank of the aggressing country. It will be closed. Urgent to withdraw your money” on the facade of a local branch of the Russian bank “Sberbank” on Feb. 2, 2017 in Kyiv, as part of a nation wide unlimited protest action to block Russian banks in Ukraine.

Photo by AFP

The National Bank of Ukraine (NBU) has suggested implementing the National Security and Defense Council (NSDC) decision by banning the Ukrainian subsidiaries of Russian state-owned banks from moving capital outside Ukraine.

“The imposition of such sanctions means prohibiting the carrying out of any financial operations in favor of the parent bank, i.e. granting interbank loans, deposits, subordinated debts, purchase of securities, placement of funds at correspondent accounts and other such operations,” NBU First Deputy Head Yakiv Smoliy said at a briefing.

“This also involves banning payment of dividends, interest, return of interbank loans, funds from correspondent accounts and a subordinated debt. We also propose banning profit and capital distribution,” Smoliy said.

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